PROPGUIDE − A Complete Property Guide

An Explainer: Unsecured Loans

Loading video...


As the name suggests, an unsecured loan is such a loan which a bank offers a borrower without keeping any collateral. When you go for a home loan, for instance, your property is the collateral against which the bank offers you the loan. In case of a default, the bank has the right to claim the said property. This is why a home loan does not fall in the category of an unsecured loan.

Typically, credit cards and personal loans are considered unsecured loans, while home loans, automobile loans, and loans against property or jewellery come under secured loans. Banks issue unsecured loans entirely on the basis of your creditworthiness. Because there is no guarantee kept against the loan, the interest rates charged are also higher than those for secured loans. Also, unlike a secured loan, you cannot claim tax deductions on the interest that you pay on an unsecured loan.

While many a time an unsecured loan is availed of for personal requirements, there sometimes are cases of people going for personal loans to meet any shortfall in their home loan amount. It is advisable to use savings rather than opting for a personal loan, because you end up paying more in a situation like that.

Blogs Related To Unsecured Loan

What To Keep In Mind While Preparing For Home Loan Repayment

5 Reasons Why Your Home Loan Application Might Get Rejected


Tags: home loan, Real Estate, banks, Video, propguide

#Budget2017: Affordable Housing To Get Infrastructure Status

After Finance Minister Arun Jaitley presented the Union Budget 2017-18, Prime Minister Narendra Modi said the housing sector stood to gain immensely from the new announcements.

February 01 2017

+ Click Here To Read This Article

Looking For A Budget House? You Can Bank On EPFO

Retirement fund body EPFO plans to finance low-cost housing for its 50 million subscribers.

March 16 2017

+ Click Here To Read This Article

5 Things Prospective Home Buyers Must Do

Right when you decide on a timeline within which you would want to become a property owner, you have to start  on many small and big aspects of your life. There are many dos and donts that prospective home buyers have to follow to ensure a smooth property transaction.  

February 17 2017

+ Click Here To Read This Article

#Budget2017: Real Estate Sector Demands Simple And Effective Norms

One of the major announcements was of the Real Estate (Regulation & Development) Act 2016 (RERA), which is expected to be profitable for both customers as well as builders, will bring about a great deal of transparency.

January 31 2017

+ Click Here To Read This Article

Property Co-Owners Can Avail Of These Tax Benefits

In property investment, buying a property through joint ownership can increase the amount one can borrow and helps obtain huge tax benefits. Before investing a large amount of their hard-earned money, buyers should be cleared of all the facts and originalities of buying a property through co-ownership.

January 23 2017

+ Click Here To Read This Article

#Budget2017: Regulation Of Construction Material, Reducing Construction Cost Are The Key Areas To Focus On

Housing for All by 2022, act as a major driver for the upliftment of construction industry. in the upcoming Union Budget 2017, any policy announcements in infrastructure and industries will directly benefit the construction industry too, which is at present seems positive.

January 19 2017

+ Click Here To Read This Article

#Budget2017: Top 5 Wishes On A Real Estate Developer's Mind

One of the country’s largest contributors towards Gross Domestic Product (GDP) and employment generation, real estate sector, is extremely hopeful for a positive Budget 2017-18.

January 17 2017

+ Click Here To Read This Article

Solar Rooftops Could Help You Cut Down Energy Bills. Know How

Increased urbanisation and rising incomes are expected to result in an exponential growth in housing. Replacement of diesel generator (DG) sets with solar rooftops in residential housing complexes would be vital to achieve the determined target of installing 40 GW rooftop solar power capacity in India by 2022.

January 11 2017

+ Click Here To Read This Article

Here are today’s top stories from the real estate sector.

Inherited a land parcel but don’t know how to use it for making money? Here are few business plans...

It is essential to get your apartment registered with the Registrar of Societies because only a...

Housing unaffordability does not deprive one only of a dwelling. It also influences lives in ways...

New projects, numerous options, and reputed developers, make these five localities ideal for...

Here is a checklist of documents required for buying a property. While some of these documents have...

Though Bahadurgarh real estate market doesn't look bright yet, there are key drivers that can help...

The property was first auctioned in March 2016 for a reserve price of Rs 150 crore, this price was...

A building code is a set of norms that govern construction of buildings by stipulating minimum...

PropGuide simplifies complex real estate jargons for you.

Proptiger has released it's quarterly review report on India's real estate sector. Ankur Dhawan,...

Prime lending rate is the interest rate at which banks lend to its most credit worthy...

Subscribe Now

To stay tuned with real estate updates


x +

Drop Your Query Here